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Subject:
From:
"Valerie W, McClain" <[log in to unmask]>
Reply To:
Lactation Information and Discussion <[log in to unmask]>
Date:
Mon, 8 Dec 2003 06:10:34 EST
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Winnie and the many who corrected my erronous assumptions of infant formula
advertising, thank you, I stand corrected.   I am just amazed by it and hope
that someone might send me some of these advertisments.  For example Carnation
Good Start states in print that their product is better than Similiac or
Enfamil and vice versa?  Advertising is amazing--and they don't sue each other for
libel/slander?

I am intrigued by comments that were made by a Senior Economist for the USDA,
James M. MacDonald in a speech at the 2000 Agricultural Outlook Forum in
which he briefly discusses the infant formula industry.

"http://www.usda.gov/oce/waob/oc2000/speeches/macdonald.txt

On the consumer side of the food sector, the results of the government's
attempts to induce competition among the three makers of infant formula are just
as striking; the federal Women, Infants, and Children (WIC) program, which
purchases about half of the infant formula consumed in the United States, pays
wholesale prices for formula that are one fifth the wholesale price offered to
non-WIC buyers (GAO, 1998). Assuming that the government receives the
competitive price, prices in the non-WIC market reflect enormous market power. These
cases should give pause to anyone who thinks that cartels are inherently unstable
or that competition can have only small effects on prices."

So my question is, does infant formula advertising reflect reality?  This
senior economist from the USDA seems to be saying that the government is trying
to induce competion among the infant formula industry.  I recently read various
economists who describe the infant formula industry as a "oligopoly" (a
market where so few producers supply a commodity or service that each of them can
influence its price. with or without an agreement between them).  The oil
industry is also considered an oligopoly, too.  Thus I would suggest that there is
what I would call pseudo-competition.

The President of the International Formula Council in 1999 was Robert C.
Gelardi.  I do not know if he is still the President but I suspect that he still
is very involved.  He also is President and CEO for a company called The Kellon
Company.  This company provides "association management, government affairs,
public relations, meetings management, creative communications, Web site
development and other profession servies to associations, as well as individula
companies."  (2nd largest association management company in USA with offices in
Atlanta, NY City, Washington,DC, and Brussels, Belgium)  The "added value" of
this company is that clients of this company "benefit from the synergies
created by our credibility and productive relationships with Congress, regulatory
agencies, the media, health and scientific groups and other opinion leaders. Our
professionals have extensive experience in government affairs, working with
FDA, USDA, EPA, OSHA, CPSC, FTC, DOT and other federal and related state
agencies on a variety of issues."
http://www.kellencompany.com/addedvalue.html

Our course the International Formual Council is a client of this company.
The Kellen  Company has an award winning Public Relations Division--Sumner Rider
& Associates.  So this is partly what breastfeeding advocates are up against.


Like the Tobacco Industry, this industry has enormous influence within
Congress, within governmental agencies and the AMA.  Exposure of these practices is
one way to make these various agencies and institutions change the way they
have been dealing with this issue.  I believe it's a waste of our energy to
spend time discussing how horrible the infant formula industry is because it is a
worthless endeavor against a multi-billion dollar industry.  This is the way
the political and economic climate is in the USA.  But change can happen, if we
shine a light on these practices.
Valerie W. McClain, IBCLC




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